Can your brain influence your investment accounts? The study of behavioral economics would suggest that it could. Behavioral economics is a psychological study of how cognitive and emotional factors ...
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What Does Loss Aversion Mean?
Loss aversion is a psychological phenomenon that refers to the tendency of people to strongly prefer avoiding losses rather than acquiring equivalent gains. In other words, the pain of losing ...
Given the choice, most of us would rather avoid a loss than reap a reward. This can help us avoid making expensive mistakes, but it can also make us risk averse and prevent us from taking advantage of ...
The idea of loss aversion—that, to an irrational degree, individuals avoid losses more than they pursue gains—has been influential in the field of behavioral finance. It has been imputed to drive ...
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